Seoul: South Korea issued its first Australian dollar-denominated bonds, worth AU$450 million (US$291 million), marking a significant step in diversifying its foreign currency funding channels, the finance ministry revealed on Tuesday. The "Kangaroo" bond, introduced as a single tranche with a five-year maturity, was offered at an interest rate of 4.51 percent.According to Yonhap News Agency, the finance ministry highlighted the potential of this issuance in attracting new investments, especially from Australia. Australia is recognized as an advanced financial market, housing one of the world's largest pension funds and major asset management firms. This strategic move aligns with the fact that Australia stands as South Korea's fourth-largest trading partner by import value, which significantly influenced the decision to choose it as the bond issuance market.Yoo Chang-yeon, a senior official from the finance ministry, underscored the importance of the issuance, stating, "The first-ever issuance of an Aust ralian dollar-denominated foreign exchange bond holds great significance as it diversifies foreign currency funding channels and enhances the benchmark role of foreign exchange stabilization bonds." This issuance adds to South Korea's history of foreign currency bonds, which have previously been denominated in U.S. dollars, euros, Chinese yuan, and Japanese yen.
- September 13, 2026
